Godrej Finance aims to double its branches in Andhra Pradesh and expand its gold loan portfolio across southern India after acquiring Kanakadurga Finance, setting sights on a ₹5,000 crore gold loan book by 2031 and serving nearly 1 million customers nationwide.
Godrej Finance Limited is preparing a wider push into the gold loan market in Andhra Pradesh and across southern India after completing the purchase of Kanakadurga Finance’s gold loan business, as the company looks to build a larger secured lending franchise in a fast-expanding segment.
According to a press release cited by The Hindu, the Godrej Capital subsidiary plans to more than double its branch network in Andhra Pradesh over the next 24 months, taking it from 54 outlets to 100, while lifting its customer base in the state from 12,000 to 25,000. The company also intends to deepen its presence in Tamil Nadu before moving into Karnataka.
The acquisition gives Godrej Finance an established starting point. Reporting by the Financial Express and Economic Times said the Kanakadurga deal added about ₹280 crore in assets under management, nearly 12,000 customers, 54 branches in Andhra Pradesh and around 250 employees. Kotak Neo reported that the transaction value was ₹117.5 crore.
Godrej Capital has set a broader ambition of building a ₹5,000 crore gold loan book by 2031 and expanding its overall assets under management to ₹1 lakh crore through acquisitions and organic growth, according to those reports. The company is also aiming to serve nearly 1 million customers nationwide. Gold loans have been gaining traction in India as borrowers turn to secured credit, with LiveMint reporting that the segment has seen strong growth and has expanded beyond its traditional southern base into states such as Uttar Pradesh, West Bengal, Rajasthan and Maharashtra.
Pankaj Gupta, managing director and chief executive of Godrej Finance Limited, said Andhra Pradesh will be a key market for the business as it pursues its wider South India expansion.
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